What is the Cost of Selling a 30A Luxury Home?
Many sellers tend to overlook the actual costs of selling a 30A luxury home. Real estate agent’s commission is usually the first thing that people tend to think of when it comes to home selling expenses since it’s the biggest cost. However, there are other fees and expenses you should be aware of before putting your 30A luxury home for sale on the market.
1. State Document Stamps (Doc Stamps on the Deed)
Although there is no income tax in Florida, there are other taxes the state requires, especially when selling your homes along 30A. The State Document Stamps, or doc stamps on the deed is typically paid by the seller. It is $7.00 per thousand of the selling price. If you have a $2.1 million 30A luxury home for sale, you will pay a deed transfer tax of $14,700.
2. Owner’s title insurance
The seller must provide clear title to the buyer, or the Buyer is not able to purchase a title insurance policy. While typically a Buyer expense, this can be negotiated during the contract process.
The rate of the title insurance in Florida is $5.75 per thousand for the first $100,000 of the selling price and $5.00 per thousand for homes from $101,000 to $1 million. On a $2.1 million home, that would be $10,575. (This is just for the Owner’s title policy).
3. Settlement cost
This is usually paid by whichever party pays for title insurance and can vary from $ 300 to $ 400.
The survey is also paid the buyer. Depending upon the size of the property, the cost will vary. Average price is $400 – $500.
5. Wood Destroying Organism Damage (WDO)
Some Banks require a WDO inspection report. Most banks will not approve a new mortgage until all damage has been repaired. A standard contract requires the buyer to pay for the report, which will run about $75 – $100 and the seller to pay up to 1.5% of the home’s selling price to repair any damage. (Keep in mind this percentage is also negotiable during the contract process). On a $2.1 million 30A luxury home for sale, at the full 1.5% the seller would be responsible for WDO repairs up to $31,500.
6. Other repairs
Some sales contracts will allow the buyer to back out of the contract if they find anything within the inspection period that is not to their satisfaction…this would be an “As-is” contract. Most of the time, the buyer will ask the seller to pay up to 1.5% of the purchase price towards ‘warranted’ repairs (anything non-cosmetic) or provide the buyer a credit for repairs in various amounts. (Again, the percentage is negotiable during the contract process).
7. Real Estate Commission
Commissions are split between the Listing Agent and the Selling Agent. What most people don’t understand is that both the listing agent and selling agent must pay their Broker a percentage of the commission, so we are not keeping the full amount. A full service broker usually charges 6% of the selling price. On a $ 2.1 million home sold, that’s $126,000.
With the exception of the real estate commission (typically always paid by the seller) all of the above costs, fees, and expenses, are negotiable during the contract process. Make sure you discuss with your real estate agent and that you are aware of all the costs and fees involved before selling your home. To find out what your 30A luxury home is worth fill out the form on this page: http://www.debbiejames.com/homevalue/. I am happy to provide a no obligation quote!